Running head: BUSINESS REGULATION SIMULATION
Business Regulation Simulation
Karen Berdugo
University of Phoenix
Enterprise Risk
MBA 560
Professor Darnell Stroble
Jul 16, 2007
Business Regulation Simulation
Introduction
Alumina Inc. is a $4 billion aluminum maker, based in the United States and operates in eight countries around the world. The United States market constitutes of 70% of its sales. The company manufactures automotive components, alumina refining, bauxite mining and aluminum smelting.
As the business manager, I am leading the effort in managing a crisis arising out of allegations of environmental damages. (University of Phoenix, 2007) In this paper, I will identify the key facts, regulations, and legal issues. The result of my decisions will need to ensure that I prevent extensive losses (environmental and commercial), preserve the company’s image and abide by the pertinent environmental statutes.
Key Facts, Regulations and Legal Issues
Five years ago, Alumina violated an EPA evaluation environmental norm but quickly mitigated the damages. Since then, the company has maintained a good compliance record. Recently, the company found itself in legal troubles when a local resident accused the company of repeatedly contaminating the waters of Lake Dira with carcinogenic effluents. The complainant alleged that the contaminated water was the sole cause of her 10-year-old daughter’s illness to leukemia. The text states that “most of the environmental laws, such as the Clean Air and Water Acts, contain citizen enforcement provisions, which grant private citizens and groups the standing to sue to challenge failures to comply with the environmental laws.” (Reed, Morehead, Shedd, & Corley ...